Fairfax Financial Holdings Ltd. reported a wider loss in the the third quarter due to charges incurred by hurricanes Katrina and Rita.
After markets closed Thursday, the Toronto-based insurance holding company reported a loss of US$220 million, or US$13.83 a share, for the quarter ended September 30.
That was double the loss of US$109.4 million, or US$8.08 a share, in the year-before quarter when Fairfax was hurt by four hurricanes.
The results were in line with its twice-revised estimates of the impact from the two hurricanes. Fairfax booked a US$271 million after-tax and minority interest loss for its hurricane exposure.
That compared with an October 6 estimate of US$275 million.
“While our results were, necessarily, hugely affected by these losses, our financial strength and the capital base of our insurance and reinsurance companies permitted us to absorb them,” Prem Watsa, Fairfax’s chairman and CEO, said in a news release.
“It is very encouraging to note that if the effect of the losses from hurricanes Katrina and Rita were removed, we would have produced excellent combined ratios and good earnings in the third quarter.”
Excluding the hurricane impact, Fairfax said it would have earned US$51.7 million, boosted by strong underwriting results and rising investment income.
Fairfax said revenue was US$1.54 billion in the quarter, up from US$1.42 billion.
Fairfax loss widens in third quarter
- By: IE Staff
- October 28, 2005 October 28, 2005
- 08:30